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Minnehaha County authorizes health-plan service agreements with Horizon, Sanford, Avera and UMR
Summary
The commission authorized the chair to sign administrative services agreements for the county’s self-funded health plan; Horizon’s fee remains $6.50 per employee per month, Sanford’s fees rise 10% for 2021, Avera’s fees increase ~2.5–2.8% annually, and UMR’s renewal reflects a 3% medical-claims increase in 2021.
Carey Deaver, Minnehaha County’s Human Resources Director, presented Administrative Services Agreements on Oct. 27 for the county’s self-funded group health plan and asked the commission to authorize the chair to sign four agreements: Horizon Agency (network management), Sanford Health Plan, Avera Health Plans, Inc. (fourth amendment) and UMR, Inc. (financial renewal).
Deaver said the Horizon Agency agreement continues a network-management arrangement at $6.50 per employee per month, unchanged from the current agreement, with updated term dates from Jan. 1, 2021, through Dec. 31, 2023. The Sanford Health Plan agreement includes a 10% fee increase for network re-pricing, customer service, precertification, utilization management and case management services for 2021; because no increases are scheduled for 2022 or 2023, the county will see an average annual increase of less than 3.5% over the three-year period.
Avera Health Plans’ fourth amendment would raise network-repricing and customer-service support fees by roughly 2.5–2.7% annually; utilization management and large-case-management fees would increase roughly 2.4–2.8% annually. UMR’s Financial Renewal and Terms Amendment reflects a 3% medical-claims increase in 2021 and 2% in both 2022 and 2023, plus a 2% stop-loss interface fee increase for 2022 and 2023.
The commission voted 5-0 to authorize the chair to sign the Horizon Agency Administrative Services Agreement (Jan. 1, 2021–Dec. 31, 2023), the Sanford Health Plan agreement (effective Jan. 1, 2021), the Fourth Amendment with Avera Health Plans (effective Jan. 1, 2021–Dec. 31, 2023) and the UMR Financial Renewal and Terms Amendment (effective Jan. 1, 2021). The record shows the county identified these as administrative and operational changes to the county’s self-funded plan rather than policy changes requiring separate public hearings.
